Abbott Labs (ABT) recently presented encouraging data on its psoriasis candidate, ABT-874. Results were presented from four pivotal phase III studies at the European Association of Dermatology and Venereology scientific sessions.
Results showed that a higher number of patients being treated with ABT-874 achieved skin clearance rates of at least 75% compared to patients being treated with Amgen/Pfizer’s (AMGN/PFE) Enbrel, methotrexate or placebo. The studies were conducted in patients with moderate to severe chronic plaque psoriasis.
Common adverse events included upper respiratory infection, stuffy nose, headache, joint pain, hypertension and back pain.
Earlier this year, Abbott Labs had said that it intends to file for approval of the psoriasis indication during this summer. ABT-874 is also being studied for Crohn’s disease.
ABT-874 is one of the most important pipeline candidates at Abbott Labs. Abbott Labs already has a successful psoriasis drug in its portfolio in the form of Humira, which is approved for several indications including psoriasis. Humira sales came in at $5.5 billion in 2009.
The approval of ABT-874 for the psoriasis indication would provide patients with an alternative treatment option. Once approved and launched, ABT-874 will compete primarily with Enbrel and Johnson & Johnson’s (JNJ) Remicade and Stelara.
Neutral on Abbott Labs
We currently have a Neutral recommendation on Abbott Labs, which is supported by a Zacks #3 Rank (short-term Hold rating). Abbott Labs’ strong business segments, contributions from recent acquisitions and impressive late-stage pipeline should help fortify long-term earnings growth. We expect the lead product, Humira, to remain a huge growth driver for years to come.
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